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Sewer fund pressure from Met Council fees prompts phased water-billing plan and higher base-rate discussion
Summary
Staff told Minnetrista council that Met Council charges (about $506,000 projected for 2026) and aging lift-station equipment are the primary drivers of sewer-fund pressure, recommended modest base-rate increases, and proposed switching water billing to monthly starting July 1, 2026 with an outreach plan and a November return for final fee schedule decisions.
City staff and a finance presenter told Minnetrista council the sewer fund’s main cost driver is charges passed through by the Met Council and that capital needs (lift stations, panels, pumps) and parts obsolescence will require steady funding.
The consultant-style presenter said the Met Council allocation for Minnetrista is roughly $506,000 for 2026 and described that as the largest recurring driver of the sewer budget. Staff proposed several base-rate options (example quarterly base fees in the packet: $50, $75, or $100) and noted the city could phase in changes to limit customer shock while protecting fund balance and capital plans. "The biggest driver of of this fund each year is always, the Met Council charge that they allocate out to all the different communities," the presenter said.
Why it matters: A sustained increase in outside treatment charges and aging equipment could require periodic rate hikes. Staff identified a modest drawdown of fund balance and recommended stepping rates rather than a single large jump and recommended a communications plan before changing billing cadence.
Key decisions and timing: Council discussed moving the billing cadence from quarterly to monthly and agreed staff should plan for a transition that would begin July 1, 2026, provided staff completes software and communication preparations. The mayor asked staff for a communications plan prior to implementation: "Billing starting July... give us that communication plan." Council also asked staff to return with rounded base-rate options and a four-tier usage schedule at the November meeting so the fee schedule can be amended in time to divide quarterly amounts into monthly bills.
Other details: Staff estimated there are roughly 2,250 accounts; packet scenarios estimated annual base-fee revenue at about $675,000 for an intermediate option and around $900,000 for a $100-quarter base. The council directed staff to prepare specifics and contractor/implementation steps for the transition and outreach.
